West Pharmaceutical Services, Inc. stock research
FY2026 Q1
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit improved year over year but declined sequentially. Gross margin weakened from the previous quarter but strengthened relative to the year-ago period, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit improved year over year but declined sequentially. Gross margin weakened from the previous quarter but strengthened relative to the year-ago period, reflecting a mixed performance.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue changes. Revenue rose more than cost of revenue compared to the year-ago quarter, supporting margin expansion, but cost of revenue increased faster than revenue sequentially, compressing margins.
- Compared to the prior quarter, gross profit was lower despite higher revenue, as cost of revenue increased at a faster pace. Versus the same quarter last year, both revenue and gross profit were higher, with gross margin improving due to a proportionally smaller increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.1%
Gross profit
$296.4M
Revenue
$844.9M
Cost of revenue
$548.5M
Quarter-over-quarter change
-2.7 pts
Year-over-year change
+1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $766.5M | $273.9M | $492.6M | 35.7% |
| Sep 30, 2025 | $804.6M | $294.3M | $510.3M | 36.6% |
| Dec 31, 2025 | $805.0M | $303.9M | $501.1M | 37.8% |
| Mar 31, 2026 | $844.9M | $296.4M | $548.5M | 35.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-2.7 pts
Year-over-year change
Mar 31, 2025
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue changes. Revenue rose more than cost of revenue compared to the year-ago quarter, supporting margin expansion, but cost of revenue increased faster than revenue sequentially, compressing margins.
Compared to the prior quarter, gross profit was lower despite higher revenue, as cost of revenue increased at a faster pace. Versus the same quarter last year, both revenue and gross profit were higher, with gross margin improving due to a proportionally smaller increase in cost of revenue.
Monitor the trend in cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and weighed on gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| West Pharmaceutical Services, Inc. (WST) | 35.1% |